MomentumOptions.com Mid-Market Update for 4/7/2017

Jobs Report Fails to Impress/ Profit Alert (TXMD)/ Trade Alert (TSEM)

2:25pm (EST)

The stock market has taken a backseat to last night’s airstrike on Syria, and understandingly so, but has shown some resiliency given the events that have transpired over the past 24 hours.

This morning’s jobs report would have been the main headline on Wall Street, but with a negative tone, as numbers were well below expectations. Nonfarm payrolls for the month of March came in at 98,000 versus expectations for a print of 198,000. Meanwhile, the unemployment rate fell to 4.5%, the lowest since 2007.

While I mentioned the bears were on track for the weekly win, the resiliency shown throughout the week by the bulls, and especially today, is encouraging.

The Dow is gaining 56 points to 20,720 while the S&P 500 is higher by 4 points to 2,362. The Nasdaq is adding 11 points to 5,890 and the Russell 2000 is advancing a point to 1,365.

I have been careful opening a slew of new trades over the past few weeks as I often mention trading ranges and whipsaw action can have adverse effects on time sensitive option trades. This is what makes trading options so much more difficult than trading stocks because you have to be right about the direction of a stock within a certain amount of time.

I have a Profit Alert for TXMD and I have decided to close TSEM. I could have a New Trade ahead of the close, but if you don’t hear from me again, have a great and safe weekend.

 

Momentum Options Play List

Closed Momentum Options Trades for 2017: 21-4 (84%). All trades are dated and time stamped for verification. New subscribers can look at the past history to see how the trades have played out or to research our Track Records.

Do not risk more than 5% of your trading account on any one trade but do try to take all of the trades. Please remember, all “Exit Targets” and “Stop Targets” are targets. You should not have any “Hard Stops” entered to close any trades or “Exit Orders” in your brokerage account unless I list one. I will send out a “Profit Alert” or “New Trade” if I want you to close a position or if a new trade comes out. Otherwise, follow instructions at all times in the 8am and 12pm–2pm (EST) updates. Also, I will usually give you a heads-up if I think I’m going to send a Trade Alert outside of these time frames.

 

STMicroelectronics (STM, $15.61, up $0.21)

STM May 15 calls (STM170519C00015000, $1.25, up $0.15)

Entry Price: $1.15 (3/31/2017)
Exit Target: $2.30
Return: 9%
Stop Target: 55 cents

Action: Resistance is at $15.75-$16. Support is at $15.25-$15.

 

TherapeuticsMD (TXMD, $7.75, down $0.34)

TXMD May 7.50 calls (TXMD170519C00007500, $1.05, down $0.25)

Entry Price: $0.80 (3/27/2017)
Exit Target: $1.60
Return: 31%
Stop Target: 95 cents (Stop Limit)

Action: Close the trade at current levels to lock-in profits. We can revisit TXMD if shares recover $8.

 

Viavi Solutions (VIAV, $10.06, down $0.20)

VIAV May 12 calls (VIAV170519C00012000, $0.10, flat)

Entry Price: $0.29 (3/27/2017)
Exit Target: $0.60
Return: -66%
Stop Target: None

VIAV April 11 calls (VIAV170421C00011000, $0.05, flat)

Entry Price: $0.42 (3/20/2017)
Exit Target: $0.85
Return: -88%
Stop Target: None

Action: Support is at $10-$9.75. Resistance is at $10.50.

 

Amicus Therapeutics (FOLD, $6.91, up $0.06)

FOLD April 8 calls (FOLD170421C00008000, $0.05, flat)

Entry Price: $0.60 (3/2/2017)
Exit Target: $1.20
Return: -92%
Stop Target: None

Action: Resistance is at $7-$7.25. Support is at $6.75.

 

Tower Semiconductor (TSEM, $22.44, down $0.04)

TSEM April 24 calls (TSEM170421C00024000, $0.05, down $0.05)

Entry Price: $0.65 (3/1/2017)
Exit Target: $1.30
Return: -92%
Stop Target: None

Action: Close the trade at current levels to save the remaining premium.

 

Flex (FLEX, $16.34, down $0.11)

FLEX April 17 calls (FLEX170421C00017000, $0.05, flat)

Entry Price: $0.35 (2/15/2017)
Exit Target: $0.70
Return: -86%
Stop Target: None

Action: Support is at $16.25-$16. Resistance is at $16.50-$16.75.